Casey Opitz’s research while affiliated with University of Virginia and other places

This case follows "Aqua Company (A)," F-0778. After the investment bankers recommend a price for Aqua in terms of financing, a stockholder of the family-owned company threatens to block the takeover, and Merrill Lynch must determine whether to offer a bridge loan to speed the deal. Two instructor Lotus worksheet files are available on computer diskettes for use with the teaching note.

This case is meant to follow "Sprigg Lane (A)" (QA-0372), which introduces Monte Carlo simulation as a valuation technique. The B case introduces the use of Black-Scholes to treat a capital-budgeting decision as an option. In this case, the decision is whether or not to drill a gas well.

Investment bankers must recommend a price and terms of financing, including senior and mezzanine debt and equity for the acquisition of this company by a firm that arranges leveraged buyouts. The B case is F-0779.

A lending officer of a large regional bank entertains the opportunity to position his bank in the senior debt, subordinate debt, and equity of the leveraged-buyout financing of this company. The student must value all three layers of capital to determine the most advantageous position for the bank.

In this case, the owner of a small steel mill, which he has acquired and turned around, must determine how best to raise long-term capital for the firm: (1) through the private placement of long-term notes and warrants, (2) through an initial public offering, or (3) by selling the company. Student and instructor worksheet files are available for use with the case and teaching note.

IIn mid September 2001, Jennifer Campbell, the chief financial officer of this large CAD/CAM (computer-aided design and manufacturing) equipment manufacturer must decide whether to pay out dividends to the firms shareholders, or repurchase stock. If Campbell chooses to pay out dividends, she must also decide on the magnitude of the payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend and share buyback decisions, including: (1) signaling effects, (2) clientele effects, and (3) finance and investment implications of increasing dividend payout and share repurchase decisions. This case can follow a treatment of the Miller-Modigliani dividend irrelevance theorem and serves to highlight practical considerations in setting dividend policy.

Students act as outside analysts attempting to determine how Alfin will finance its expected growth based on sales of antiwrinkle cream.

In March 1997, the board chair of this small steel mill is pondering how to finance the growth of his firm: either with an initial public offering of equity or a private placement of 8-year senior notes with warrants. The task for the student is to sort out the comparative advantages and disadvantages of each alternative�including valuing the possible securities�and recommend a course of action.

Acting as management, students determine the effects of different degrees of leverage and review this company's current leverage in light of inherent industry risks and company goals.